For the second time in as many days, Microsoft briefly regained the mantle as the world’s most valuable company (in terms of stock market valuation) from Apple.
First up on Monday Microsoft’s share value topped Apple’s (as the Apple share price was falling). Microsoft shares drifted back, leaving Apple on top by around $US10 billion.
Then on Tuesday, the Microsoft value topped Apple’s for a second, but longer time, as the share price of the iPhone maker continued to fade.
But Microsoft shares softened and by the close of trading on Tuesday, the iPhone maker was once again ahead, with a market value of $US828 billion, compared to Microsoft’s $US822 billion.
Apple has been the world’s most valuable company for about seven years, having overtaken ExxonMobil in 2011.
Mid-year it became the first public company to be valued at more than a trillion dollars and was briefly joined for a moment or two by Amazon.
Microsoft shares though have enjoyed a five-year rally as its share price has more than troubled to more than $US100 (over $US107 at the close on Tuesday.
Most of that rise has come under CEO Satya Nadella, who has steadied Microsoft’s traditional Windows and Office software businesses (they are cash cows), and driven well growth from the company’s rapidly expanding cloud computing arm (it is probably Number 2 behind Amazon).
But some sense is needed here before there’s another surge in ‘changing of the guard stories’ that we saw when Amazon topped a trillion dollars and many analysts claimed it would challenge Apple.
The reason for Microsoft’s gains has been the past over-valuation of Apple shares – they are down 20% in the past month while Microsoft shares have risen 0.6%. The S&P 500 is down 0.02% in the past month.
The shares of Warren Buffett’s Berkshire Hathaway are up 3.57% in the past month – the slide in Apple’s market value of Buffett’s biggest investment ($US56 billion-plus at the end of the September quarter) hasn’t infected the Berkshire share price.
That tells you something about the hype around Apple earlier this year (and perhaps might also reveal something of the current negative overreaction. There could be a surprise on the upside from Apple in the next two months or so).
